Decision details

Councillor Sean Thorpe, Cabinet Member, Finance and Transformation, presented the report which set out the following:

• the 2023/24 revenue outturn position.
• the updated Medium-Term Financial Forecast (MTFF) position for 2024/25 to 2026/27.
• the updated Net Budget for 2024/25.
• the final reserves position as at 31 March 2024.
• 2023/24 capital outturn position
• An update on the Finance Improvement Plan

Members were advised there is an overspend of £6.607 million with the direction of travel being downwards with the pressures being primarily in the Children and Young People budget.

In response to a member query regarding dividends from Manchester Airport, members were informed that dividend  is not due until 2028. Neil Kissock advised updated information on the matter will inform the Medium Term Financial Strategy and be reported back to Cabinet in September.

Decision:

Cabinet:

• Noted the 2023/24 revenue outturn position of a £6.607m overspend (3.47%) against a net budget of £190.274m.
• Approved the updates to the Medium-Term Financial Forecast (MTFF) for the additional £1.701m Social Care Grant, £22k increase in the Services Grant and an increase to the fees and charges as set in section 21 and Appendix A totalling £444k.
• Noted the updated budget gap of £27.918m, a reduction of £2.167m on the £30.085m budget gap reported at the Budget Council Meeting in February 2024.
• Noted the updated Net Revenue Budget of £224.480m and £1.982m reduction in the use of reserves, from £15.131m to £13.149m.
• Noted the General Fund and Earmarked Reserves balance at 31 March 2024 of £104.389m.
• Noted the overall 2023/24 capital programme outturn position of £52.944m, 70% compared to the overall 2023/24 capital programme budget of £75.475m.
• Approved the in-year capital slippage of £23.419m is transferred into 2024/25.
• Noted the Finance Improvement Plan update.
• Noted the work plan to close the £27.918m budget gap.

Reasons for recommendation(s):

• To note the final financial position for 2023/24 subject to external audit.
• To update members on the Councils budgetary position and set out the work plan to close the budget gap.

Alternative options considered and rejected:

• Not increase fees and charges.